Chapter 20 Accounting For State and Local Governmental Units - Proprietary and Fiduciary Funds
Chapter 20 Accounting For State and Local Governmental Units - Proprietary and Fiduciary Funds
Chapter 20 Accounting For State and Local Governmental Units - Proprietary and Fiduciary Funds
to accompany
Advanced Accounting, 10th edition
by Floyd A. Beams, Robin P. Clement,
Joseph H. Anthony, and Suzanne Lowensohn
Agency Model:
Assets = Liabilities
© Pearson Education, Inc. publishing as Prentice Hall 20-27
Agency Transactions
• New County collects property taxes for two
cities, A and B. New County uses an agency
fund to record the assessment and collections
• It deducts a 1% commission for acting as agent
– The 1% commission is transferred to the
general fund, and recorded as revenue there
• For simplicity, assume all taxes assessed are
collected
• Entries for New County follow